Docusign (NASDAQ:DOCU – Get Free Report) and 8X8 (NASDAQ:EGHT – Get Free Report) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Docusign has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, 8X8 has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500.
Valuation and Earnings
This table compares Docusign and 8X8″s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Docusign | $3.22 billion | 2.67 | $309.08 million | $1.54 | 29.24 |
| 8X8 | $735.75 million | 0.34 | $1.65 million | $0.02 | 89.00 |
Docusign has higher revenue and earnings than 8X8. Docusign is trading at a lower price-to-earnings ratio than 8X8, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations for Docusign and 8X8, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Docusign | 1 | 15 | 3 | 0 | 2.11 |
| 8X8 | 1 | 1 | 1 | 0 | 2.00 |
Docusign presently has a consensus price target of $60.27, suggesting a potential upside of 33.84%. 8X8 has a consensus price target of $2.45, suggesting a potential upside of 37.64%. Given 8X8’s higher probable upside, analysts clearly believe 8X8 is more favorable than Docusign.
Institutional & Insider Ownership
77.6% of Docusign shares are held by institutional investors. Comparatively, 94.0% of 8X8 shares are held by institutional investors. 0.6% of Docusign shares are held by company insiders. Comparatively, 2.0% of 8X8 shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Docusign and 8X8’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Docusign | 9.59% | 17.48% | 8.34% |
| 8X8 | 0.22% | 25.77% | 5.30% |
Summary
Docusign beats 8X8 on 8 of the 14 factors compared between the two stocks.
About Docusign
DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce. It also provides Identify, a signer-identification option for checking government-issued IDs; Standards-Based Signatures, which support signatures that involve digital certificates; Monitor that uses advanced analytics to track DocuSign eSignature web, mobile, and API account; Notary which enables notaries public to conduct remote online notarization transactions; and Web Forms, a web forms that quickly draft agreements using pre-populated data from completed forms or external systems via APIs. In addition, the company offers Rooms for Real Estate that provides a way for brokers and agents to manage the entire real estate transaction digitally. Signature and CLM are FedRAMP, an authorized version of DocuSign eSignature for U.S. federal government agencies; and life sciences modules that support compliance with the electronic signature practices. The company sells its products through direct and partner-assisted sales, and digital self-service purchasing. DocuSign, Inc. was incorporated in 2003 and is headquartered in San Francisco, California.
About 8X8
8×8, Inc. engages in the provision of enterprise communication solutions. It offers solutions to the business services, education, financial services, government, healthcare, and manufacturing industries. The company was founded in February 1987 and is headquartered in Campbell, CA.
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